Bluestone Global in administration, 3500 jobs lost

THOUSANDS of Bluestone Global workers have lost their jobs after the mining services provider went into administration and its subsidiaries into liquidation.

The ASX-listed company issued a statement on Tuesday saying it was “unsuccessful in securing the necessary shareholder support to repair its balance sheet” and has been left with no option but to go into administration.

While the parent company goes into administration, the majority of its subsidiaries, including hire firm ResCo, will be liquidated. ResCo is a major provider of mining services in the NSW Hunter Valley region.

KordaMentha was appointed administrator and liquidator late on Monday.

Liquidator Craig Shepard says every step is being taken to find new jobs for the 3,500 contract workers and 180 full-time staff who have been retrenched from Bluestone and its subsidiaries.

“Because of the nature of their on-hire employment contracts, the Bluestone workforce should find it easier to be re-engaged to do the same work,” he said.

KordaMentha is also arranging the payment of all employees’ entitlements, including unpaid wages and statutory severance entitlements.

Bluestone had been seeking merger opportunities to improve its profitability as well as additional investor funds to repair its balance sheet since May.

However, the company says these efforts failed and the board had no choice but to appoint administrators.